PASHA Bank, a pioneer in issuing asset-based securities (ABS) in Turkey, had, in the year 2021, provided a total of 296 million financial support to the agricultural and automotive sectors. For the year 2022, PASHA Bank targets to issue 500 million TL worth of ABS, 300 million TL worth of which in the agricultural sector. Thus, in addition to the 100 million TL worth of ABS in the first quarter of the year, it started the second quarter by issuing another 100 million TL worth of ABS. This issued ABS, which has an average maturity of 128 days, stands out with a JCR “AA-Long Term National Rating” and 29.75 annual simple interest rate of return.
Introducing ABS, which in the recent years, is on the rise as a reliable financial instrument, to the financial market investors, PASHA Bank does, on the one hand, contribute to the development of the agricultural and automotive sectors and, on the other hand, offers an investment opportunity with an attractive return. From the year 2020, when it had issued the first party of ABS, till today, PASHA Bank provided a total sum of 585 million TL financial support to both sectors, and the worth of the ABS it issued in the year 2021 had been 296 million TL.
In the year 2022, PASHA Bank will provide total 500 million TL support to the chemistry sector in addition to the agricultural and automotive sectors. It targets to issue 300 million TL worth of ABS only for the agricultural sector and lately did issue a second party of ABS at 100 million TL worth and then another party of 100 million TL worth.
PASHA Bank and OMG Capital Advisors, on behalf of Tarfin Tarim A.S., issued 100 million TL worth ABS with 128 days maturity date for qualified investors. The ABS offers a 29.75 percent annual simple interest yield and is rated by the JCR Eurasia “AA-Long Term National Rating” under the “Highly Investible” category.
Most of the agricultural term-investments in producer portfolios that are geographically and product-wise diversified were used for fertilizers, animal feed, and seeds. The majority of the amounts receivable are from these three districts: the Karatay district of the province of Konya, the central district of the province of Corum, and the central district of Amasya.
Thanks to this ABS issue, the agricultural input needs of approximately 5800 farmers have been funded by capital markets. These assets, issued for the agricultural sector, did not only constitute further support by Tarfin to more farmers, but they also proved the critical role that the innovative capital market instruments, like the ABS, in financing the real economy.
Tarfin Tarim A.S. offers fertilizers, seeds, animal feed, and similar agricultural input items to the farmers in 80 provinces and 7,600 villages at competitive prices and terms, considering their cash flows.